Ease of Doing Business for MSMEs: Indian SMEs account for 80 percent of the country’s enterprises, creating over 8,000 different value-added products, and productivity in the sector attracts a lot of FDIs.
Ease of Doing Business for MSMEs: India has the second-largest base of MSMEs, just after China. The MSME sector is a key driver for the Indian economy and possesses the potential to spread industrialization throughout the country. The sector contributes nearly 40 percent of the country’s total exports and 45 percent of total manufacturing and employs a staggering 40 percent of the workforce. And these past two decades have been quite fruitful for the sector. According to government data, 11.10 crore jobs have been estimated to be created by the MSME sector alone.
Luckily, the nation’s economy is also aiming to be a $5 trillion economy by FY25 and there have been overwhelming efforts from both the industry and the government in responding to this opportunity. This coincidence of wants puts the MSME sector in the drivers’ seat to the country’s economic development. This sector was predicted to contribute nearly a quarter of the GDP by 2020, but the pandemic slowed it down. Currently, the MSME sector contributes 17 percent to the country’s GDP, however, this sector can provide the necessary thrust required by the nation’s economy to achieve its goals.
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Reference: https://www.financialexpress.com/industry/sme/cafe-sme/msme-eodb-why-covid-hit-msme-sector-is-prophesied-to-boost-economy-towards-5-trillion-goal-by-fy25/2347511/
